Memecoin Mania & Million Dollar Scams: The Price of Solana’s Success?

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The undisputed blockchain leader of the year, the Solana ecosystem has secured the position as the number one blockchain of the year 2024. It has seen both impressive wins and alarming inherent problems and faces criticism and judgment for it repeatedly. Although its trading volume jumped to over $1.33 billion on 16 March and was astronomically high, it experienced a sharp contrast with massive failure in 72 % of the transactions.

From Solana jumping at the top of the list, contrasted by its more than 72% of the transaction fails to Solana’s meme coin frenzy marred by rug pulls and scams, all have been covered in this brief report. Read on!

DEX and MEME Coin Volume Surge

This year, Solana has risen to the list of top blockchain networks with its large increase in meme coin activity, which ignited trading volumes to their greatest ever. In the limelight of meme coins like BONK, WIF, TREMP, BODEN, and BOME, Solana’s opportunity has grown to be sought by genuine investors who are in search of lucrative opportunities in the frenzy.

Transactions Failing?

In addition to the high spirits of Solana as its trade volume was soaring, the network was plagued by the massive rise of failed transactions reaching more than 72%. On-chain data analyst Tom Wan has analyzed that this increase was mostly the result of the arrival of new tokens, which created an environment that bot operators sought to benefit from. 

His report says that 93% of the failed transactions come from Bots spamming the network, with only 17% coming from genuine organic users.

More Challenges to Tackle

Additionally, the Solana users were affected by transaction charges constantly hiking almost 2-3 times above the previous levels. With the average user still able to carry on with the transactions without the priority fees, the median transaction fee soared from 0.000005SOL to 0.000016SOL, resulting in a significant hike in transaction costs, averaging $0.065. Network congestion, failed transactions and growing costs slow down the whole user activity of the Solana ecosystem.

User Trust – Crushed and Crumpled!

According to the recent report by widely known on-chain sleuth ZachXBT, the Solana ecosystem alone was able to raise 796,000 SOLs, which is approximately $149.2 million since March 12 through  33 meme coin presales.  This surge was due to the hype of the Book of Meme $BOME token launch.

Most of these pre-sales were either rug pulls or scams, looting millions from innocent users wanting to make quick money from the boom. Most of the instances included misappropriation, sham accounts impersonating famous crypto influencers like Ansem, and pocketing the presale funds.

A Good Opportunity, But Proceed With Caution

The Solana token preserves its status as one of the top blockchains in the meme coin madness, but everything must be done carefully for investors. While there are a lot of opportunities, it also contains a vast number of threats, from scam businesses to deceiving schemes. So, how do you secure yourself?

With suitable caution and scrutiny, investors may avoid losing their investments and successfully manage their assets in a rush with resistance. Users should refrain from blindly sending funds to inactive addresses.  Usernames, especially on socials, should be checked for impersonation accounts. 

However, in the rapidly changing arena of crypto trading, caution and rationality should be kept at hand to avoid risks and continue seizing the opportunities in the Solana ecosystem.